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On the Integration of Customer Lifetime Value into Revenue Management

In: Operations Research Proceedings 2011

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  • Johannes Kolb

    (University of Augsburg)

Abstract

This paper provides insights into assessing customer relationships in a revenue management environment and depicts methodological problems that may arise in this context. For this purpose, we formulate a multi-period deterministic linear programing model, which accounts for customers’ future demand behavior being dependent on the provider’s previous availability decisions. Moreover, on the basis of an illustrative example, we investigate the impact on the control policy of a traditional deterministic linear program when both the product-related revenue and the previously developed long-term profitability measure are considered.

Suggested Citation

  • Johannes Kolb, 2012. "On the Integration of Customer Lifetime Value into Revenue Management," Operations Research Proceedings, in: Diethard Klatte & Hans-Jakob Lüthi & Karl Schmedders (ed.), Operations Research Proceedings 2011, edition 127, pages 559-564, Springer.
    • Handle: RePEc:spr:oprchp:978-3-642-29210-1_89
    DOI: 10.1007/978-3-642-29210-1_89
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    Cited by:

    1. Klein, Robert & Kolb, Johannes, 2015. "Maximizing customer equity subject to capacity constraints," Omega, Elsevier, vol. 55(C), pages 111-125.

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